Volkswagen to repurpose Osnabrück plant for defense manufacturing

Volkswagen has reached a preliminary agreement to repurpose its Osnabrück plant in Germany from automotive production to a defense manufacturing hub. The plan involves a sale of the facility to investment firm Aurelius Capital, which will hold a majority stake, and the State of Lower Saxony, which will hold a minority share.

Through a partnership with Rafael Advanced Defense Systems, the site is intended to manufacture air-defense systems and components for German and European markets. Vehicle production at the facility is scheduled to end in 2027. While the plant currently employs approximately 1,800 people, the transition is expected to preserve over 1,200 jobs initially.

Volkswagen Group CEO Oliver Blume noted the expertise and flexibility of the Osnabrück employees, while Lower Saxony’s Economic Minister, Olaf Lies, emphasized the need for Germany and Europe to strengthen their defense capabilities and increase independence.